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Monday, 30 November 2009

Who Needs Liability Insurance?

Just about everyone can benefit from liability insurance. It's one of the most affordable insurance options and offers protection from being sued by people who may have suffered an accident that they blame on you. There are many different types of liability insurance, so it's important to know which ones you need.

Automotive Insurance

Liability should come automatically with your auto insurance. Basically, if anyone is injured while riding in your car or in another car that is involved in an accident with you, you will be covered. It also protects you from legal action should someone decide the accident or injury was your fault.

Cars owners are probably the most likely to have need of their insurance, thanks to the dangers of a moving vehicle. You will make use of it in the event that you ding another vehicle... even with your door, as well as if you are involved in an accident of any kind.

Everyone who owns a vehicle needs this type of insurance.

Home Insurance

Liability policies are common when you insure your home, as well. These protect you against the possibility of legal action due to someone getting hurt on your property. It's important to have this if you own a house, particularly if you are renting it out. Even simple accidents such as falling down the front steps or tripping on the way into the garden or even a child falling off a bunk bed can become an issue. While it may not be your fault, if you own the property where the incident occurred, you could be held liable. Often, it is even a friend who will take legal action, something that you might never expect, but can happen in the blink of an eye, especially if their children are the ones affected.

All homeowners need to ensure that they are protected by this type of liability insurance.

Business Insurance

For business owners, there are two reasons to consider a liability policy for their business. First of all, if anyone is injured or if property damage occurs (such as a vehicle being vandalized while someone is shopping in your store), it's important to have business liability insurance to protect yourself against potential lawsuits. This is called general business liability.

There is another type of liability insurance, professional, which protects the business owner against personal financial loss if something goes wrong. These liability policies are not necessarily standard with business insurance, so it's important to double check the fine print.

All business owners need to have business liability insurance.

In some cases, you might need all three types of insurance. The good news is that liability policies are usually the cheapest types of insurance and you'll be able to afford all three if needed.

No one likes to think that their friends or clients are going to sue them, but unfortunately, it happens all too often. It's not good enough to simply trust that your careful attention to detail will prevent this from happening... you'd be surprised at what some people come up against.

For example, a few years back, a man found himself liable for injuries a thief incurred while trying to break into the man's home! While this is certainly an unusual situation, it's best to be prepared. You never know when someone will feel that they have sustained injury or personal harm due to negligence on your part, even if you have taken as much care as possible to prevent problems.

In short, if you drive, own a house or a business, you need to invest in liability insurance. It will save you a lot of grief in the future.